Survey: young agents value rates, technology, products from insurers

The five most important things carriers can offer independent insurance agencies are: competitive rates; technology that helps them more easily write business and service customers; a variety of markets and products; competitive commissions and support provided by service personnel via phone.

That’s what younger agents — those 40 or younger, or those who have been in the industry less than 10 years — think, according to a survey by Drive Group of Progressive Insurance Companies.

Nearly all young agents (94 percent) also say a carrier’s commitment to building a brand on behalf of independent agents is important.

The insurer conducted a countrywide online survey of young independent insurance agents on everything from business growth opportunities and technology to the skills necessary to succeed and the challenges faced by the industry. More than 750 young independent agents responded.

Importance of technology

The survey clearly shows that technology is important to younger agents. The majority of young independent agents (79 percent) say technology has been significant in helping them grow their business.

The top technologies young independent insurance agents use to manage/grow their business are carrier Web sites; agency management systems; downloads from carriers; real-time interfaces with carriers; comparative raters and, sixth, the Internet for prospecting, selling or informational purposes.

Only 11 percent of young independent insurance agents have an interactive Web site where people can quote, buy and contact them. Thirty-four percent have a static Web site and 40 percent don’t have a Web site at all.

Skills for success

The respondents reported that the top five skills needed to become a successful independent insurance agent are: product and risk management knowledge; sales skills and people management skills (tie); initiative; being a self starter; business management skill and, fifth, empathy for customers.

The top five most significant challenges faced by independent agents are: attracting new customers; increasing competition from companies selling direct; finding and retaining good people; having the variety of markets and products to meet customers’ needs and retaining existing customers.

The three most important ways young agents say they attract new business are:

Personal lines. Referrals from existing customers; cross selling new coverages to existing customers; and traditional advertising/marketing.

Commercial lines. Referrals from existing customers; cross selling new coverages to existing customers; and referrals from other organizations and area professionals.

Ninety-three (93) percent of young agents surveyed are targeting personal lines as a growth area while 75 percent are targeting commercial lines.

A majority (67 percent) say they have a succession plan in place.